- PEPE has surged 87% in the past week, but rising profits and increased whale activity could trigger selling pressure.
- Traders should watch for potential consolidation or a correction as profit-taking risks loom.
PEPE, the popular memecoin, has made a remarkable leap of 87% in the past week, propelling it into the spotlight of the cryptocurrency world. This explosive growth has generated excitement among traders and investors alike, but it has also raised concerns about potential profit-taking and the risks of a price dip. As PEPE continues its upward trajectory, the big question is whether whales are preparing for a sneaky exit strategy or if this rally is just the beginning of something bigger.
The surge was accompanied by a noticeable increase in whale activity, which typically signals buying pressure. However, recent Santiment metrics indicate that some of this activity could be profit-taking. This presents a significant risk for those hoping the rally will continue unchecked. With rising profits, the likelihood of selling pressure increases, potentially leading to a correction in the coming weeks.
Also read: Chainlink (LINK) Price Prediction: Will Bullish Momentum Push It Beyond $18?
PEPE recently broke past a critical resistance level at $0.0000088, a point it last tested in late April. As it continues to climb, the next target for PEPE is $0.0000171, a price level that acted as support earlier this year. Despite this bullish momentum, traders are closely monitoring the market for signs of consolidation or a pullback.
On-chain data shows a concerning trend. The 90-day Market Value to Realized Value (MVRV) ratio is at its highest since November 2024, signaling that many holders are sitting on significant unrealized gains. While this may indicate strong bullish sentiment, it also suggests that a wave of selling could be imminent, particularly as more investors lock in their profits.
Additionally, the Mean Coin Age of PEPE has been trending downward over the past three weeks, a sign of distribution and potential selling. Although 35.6% of the circulating supply is currently in profit, this figure is not as high as it was during previous peaks in 2024. Nonetheless, traders should remain cautious, as any further increase in the percentage of holders in profit could signal a correction similar to what the market saw last November.
In conclusion, while PEPE’s rally remains strong for now, the increasing profits and shifting on-chain metrics suggest that traders should be wary of a potential pullback. As always, the key is to remain vigilant and assess the market for any signs of a shift in sentiment.
